Tesco may create discount format

Tesco is reportedly working on a plan to launch its own discount store format in the UK to help it win back customers from Aldi and Lidl. The Sunday Times said the new group would match the discounters on price and carry a far more limited range of products than a typical Tesco store. The group is believed to be working with advisers from Boston Consulting on the format. The newspaper added that private label suppliers are being asked to sign non-disclosure agreements before contributing to the project.

A separate report by The Guardian said Tesco has also been considering a second option, which would involve a Costco-type bulk purchase format, similar to a business the group already operates in Thailand.